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Compression damping controls the unsprung weight of the vehicle. It designates the speed of the upward movement of the suspension caused by hitting a bump in a corner or during acceleration.
Depending on the vehicle, the ideal compression setting can occur at any point within the adjustment range. When the ideal setting is achieved "wheel-hop" or "walking" in a bumpy turn or straight away will be minimal and ride will not be extremely harsh.

-Rebound

Rebound damping controls the transitional roll (lean) as when entering a turn. It does not limit the total amount of roll; it does limit how fast this total roll angle is achieved. Simply put rebound dampning controls over or understeer. Too much rebound control in relation to spring rate will cause a condition known as "jacking down." This is a condition where, after hitting a bump and compressing the spring, the damper does not allow the spring to return to a neutral position before the next bump is encountered. This repeats with each subsequent bump until the car is actually lowered onto the bump stops. Contact with the bump stops causes a drastic increase in roll stiffness. If this condition occurs on the front, the car will understeer; if it occurs on the rear, the car will oversteer.